66% of Deals Were Backed by Private Equity
I have been a broker in Northeast WI for 12 years, and I have noticed that since the recession has ended more and more companies are backed by a private equity model with a bit more friendly front end model. What I mean is, a larger OEM would use private equity money, (not necessarily a bank or their own funds) to purchase a select acquisition target.
Normally in a PE exchange an office may serve as a board of directors and the management might have to stay in place and help assist the change after the sale to the PE firm.
Now, a hybrid model seems to be appearing where a large(er) company has management in place to assist the owner selling, albeit backed by PE money, the new office brings something formidable to the party such as business contracts, relationships, distribution and new sales channels. And last but not least, capital to a company that may need to grow.
The information below discusses the exact topic, with data.
I subscribe and am very active on Axial, a website where I market my deal flow, and am in direct contact with many others in my industry that are actively looking for different types of product. I find Wisconsin to be a great market for manufacturing and so do my peers. Please read the article, Investment Bankers – Are You Overlooking 66% of Buyers?, as we never do know what sector a buyer for your company will come from.